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TMI Blog2018 (5) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... source was to be given for the AY for which such income was assessable. We find that there are two lines of thoughts on the issue – one which favors grant of full TDS credit in the year of deduction itself and the other which, following strict interpretation, allows TDS credit in AY in which the income has actually been assessed/offered to tax. - I.T.A. No.5791/Mum/2014 - - - Dated:- 9-5-2018 - SHRI JOGINDER SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM For The Assessee : M.Subramaniyam,Ld. AR For The Revenue : M.V.Rajguru, Ld. DR ORDER Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2010-11 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-34 CIT(A)], Mumbai, Appeal No.CIT(A)-34/Addl.CIT 24(3)/IT- 15/2013-14 dated 03/07/2014 qua confirmation of certain additions / disallowances. The assessment for impugned AY was framed by Ld. Additional Commissioner of Income Tax Range-24(3), Mumbai [AO] u/s 143(3) of the Income Tax Act, 1961 on 06/03/2013. The effective grounds raised in the appeal reads as under:- 1. On the facts and circumstances of the case and in law, the Learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 7,56,693/-. Similar adjustment against royalty receipts resulted into denial of TDS credit of ₹ 49,800/- to the assessee. Finally, the assessee was deprived of aggregate TDS credit of ₹ 8,06,493/-. For ease of reference, the same could be tabulated in the following manner:- Sl. No. Nature of Income Amount Accrued (Rs.) Corresponding TDS (Rs.) Amt. Offered to Tax by the Assessee (Rs.) TDS Credit Claimed (Rs.) TDS Credit Allowed by Ld. AO (Rs.) TDS Credit disallowed by Ld. AO (Rs.) 1. Consultancy 83,70,287/- 8,41,240/- 8,41,240/- 8,41,240/- 84,547/- 7,56,693/- 2. Royalty 5,49,257/- 54,926/- 51,255/- 54,926/- 5,126/- 49,800/- TOTAL 89,19,544/- 8,96,166/- 8,92,49 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year of receipt of such income. Ground no.3 of appeal, is thus, partly allowed. Aggrieved, the assessee is in further appeal before us. 4. The Ld. Authorized Representative [AR] assailed the additions made by lower authorities whereas Ld. DR placed reliance on the stand of lower authorities. Reliance has been placed on several judicial pronouncements to support their respective stand. 5. We have carefully considered the rival contentions and perused relevant material on record. So far as addition u/s 50C is concerned, we find that the property has been sold for ₹ 10.11 Lacs as against stamp duty value of ₹ 11.14 Lacs and differential of the two do not exceed even 10% of the stamp duty valuation . There is nothing on record to suggest that the assessee has received any amount over and above the agreed consideration. Therefore, keeping in view the factual matrix and considering the fact that valuation being subjective matter, the impugned additions were not justified and therefore, stand deleted. Ground No.1 stand allowed. 6. So far as the adhoc disallowance of ₹ 1 Lac against certain expenditure claimed by the assessee is concerned, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to in sub-rule (1).] ( ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. ( iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. ( 3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. ( ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. ( emphasis, being supplied by us) Upon careful perusal of the rule, we find that the credit of tax deducted at source was to be given for the AY for which such income w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such income is subject to deduction of tax and remittance by the payer. The assessees who do not do it should follow Section 199 and Rule 37BA, retain the TDS certificates and claim credit in the assessment year in which such income is returned for assessment. 12. The finding of the Tribunal that there is no provision in the Income Tax Act or Rules to defer credit of tax in assessments based on TDS certificates obtained is really incorrect because sub-sections (1) and (3) of Section 199 read with Rule 37BA of the Income Tax Rules specifically authorise the assessee to retain TDS certificates and to produce it and claim credit in the year in which income on which recovery of tax made is returned for assessment. As of now, the Act does not provide that assessees should return the income for assessment in the assessment year following the previous year in which tax is recovered at source and TDS certificate is issued by the payer and if so provided assessment and credit of tax will go together which will avoid botheration for the assessees as well as for the Departmental Officers. In our view, the provisions contained in sub-sections (1) and (3) of Section 199 read with Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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